The Impact of Credit Risk on the Financial Performance of Chinese Banks

Juliana Stanley Isanzu
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Juliana Stanley Isanzu: School of Management, Wuhan University of Technology, China

Journal of International Business Research and Marketing, 2017, vol. 2, issue 3, 14-17

Abstract: The study aim was to empirically examine the impact of credit risk on the financial performance of Chinese banks. Secondary data was collected from five largest commercial banks in the country for the period of 7 years from 2008 to 2014. The study used nonperforming loans, capital adequacy ratio, impaired loan reserve, and loan impairment charges as measures of credit risk and for a measure of financial performance return on asset was used. Data analysis was done using a balanced panel data regression model, and the study findings reveal nonperforming loan and Capital adequacy have a significant impact of on financial performance of Chinese commercial banks; therefore, the need to control credit risk is crucial for bank financial performance.

Keywords: China; Credit risk; Financial performance; Banks (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:mgs:jibrme:v:2:y:2017:i:3:p:14-17

DOI: 10.18775/jibrm.1849-8558.2015.23.3002

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